Strategist Sees WTI Falling to $40 a Barrel

Summary

Bloomberg Intelligence's Mike McGlone argues that rising oil prices are accelerating a supply glut in the Western Hemisphere, forecasting WTI could fall to $40. He sees a pump-and-dump pattern spreading across commodities from gold to corn, and warns that lower gasoline prices by the midterm elections could coincide with stock market weakness.

• Mike McGlone forecasts WTI crude to drop to $40/barrel as high prices accelerate Western Hemisphere production.
• US & Canada crude surplus could reach 10 million barrels per day by 2028 if prices do not decline.
• Technology increases supply and reduces demand across commodity markets.
• Gold, silver, platinum, palladium, iron ore, and corn are reversing after early-year spikes in a pump-and-dump pattern.
• He warns that lower gasoline prices by the midterms could coincide with stock market declines.
• Gold may be stuck in a range for years after reaching multi-decade extremes versus commodities and Treasuries.
• Copper is next to decline alongside crude oil in the commodity selloff.